Mexican peso up after surprise interest-rate cut

SaumyaVaishampayan

NEW YORK (MarketWatch) -- The U.S. dollar fell 1.5% against the Mexican peso Friday in the wake of a surprise rate cut from the Mexican central bank. The central bank slashed its policy interest rate by 25 basis points to 3.75%, a new low, in a monetary-policy statement released Friday. "The accompanying statement is dovish, in our view, and keeps the door open for additional rate cuts," wrote Nader Nazmi of BNP Paribas, adding that the bank's monetary policy committee said it would watch inflation and economic activity. "We think [the bank] will now remain on hold until next year," Nazmi wrote. The U.S. dollar
USDMXN, +0.0098%
was at 13.1906 pesos in recent trade, down 1.5% from 13.3879 pesos late Thursday, according to FactSet.

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